Audits, Audit Exemption & Auditors
An audit is an examination of a company’s financial statements as prepared by the directors of the company. The audit is carried out by a qualified auditor who reports an opinion to the members as to whether the financial statements give a true and fair view of the company’s finances and agree with its accounting records.  Please refer to ODCE Information Booklet and Quick Guide on Auditors.
Yes, the directors of a company must arrange an audit of the statutory financial statements unless the company is entitled to, and chooses to avail itself of audit exemption. (Section 333 of the Companies Act 2014).
Audit exemption is the removal of the need for certain companies to have their financial statements examined and reported on by a statutory auditor.  The main conditions for audit exemption are set out in sections 358 - 364 Companies Act 2014.

    Audit Exemption

    Specific Small and Micro companies which are not Public Limited/Unlimited companies or “ineligible entities” may be entitled to claim audit exemption. 

    Small Company (individual) - A company that qualifies as a small company based on size under Section 280A of the Companies Act may avail of audit exemption provided it fulfils two or more of the following conditions:- a turnover of less than €12m,  a balance sheet total less than 6m;  an average number of employees of 50 or less. 

    Micro company - A company that qualifies as a Micro company based on size under Section 280D of the Companies Act may avail of audit exemption provided it fulfils two or more of the following conditions:- a turnover of less than €700,000,  a balance sheet total less than 350,000;  an average number of employees of 10 or less. 

    In addition, the company must have filed its annual return for both the current year and the previous year on time with the Register of Companies.

    Audit exemption is also available to a group - refer to Section 359 and 280B of the Companies Act. 

    For more information visit the CRO website:  https://www.cro.ie/Annual-Return/Financial-Statements-Requirements/Audit-Exemption

Yes. Any member or members of a company holding not less than 10% of the voting rights in the company may serve notice in writing on the company stating that they do not wish the company to avail of the audit exemption (Section 334 of the Companies Act).

In the case of a company limited by guarantee (CLG) - any member of a company may serve notice in writing on the company stating that they do not wish the company to avail of audit exemption in a specified financial year  - Section 1218 Companies Act.

 

 

An auditor (defined as a statutory auditor under the Companies Act) is an independent professional person who is qualified to perform an audit of a company’s financial statement.

A list of auditors and audit firms entitled to act as an auditor of Irish registered companies is available on this link to: Companies Registration Office (CRO).

The directors of a new company usually appoint its first auditor and thereafter the members appoint or reappoint the auditor at each AGM (Section 382 Companies Act).

ODCE's Compliance Publications

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  12 Quick Guides